Survey Finds Potential Loss for Online Retailers
Technological glitches and shopper frustration are just some of the problems leading to potential revenue losses for e-tailers, according to a Sept. 20 consumer survey released by Tealeaf Technology Inc., an online customer experience management software company based in San Francisco.
Conducted by Harris Interactive, the survey results found that online retailers have potentially lost more than $44 billion in the past year due to poor online shopping experiences, such as transaction problems leading to shopping cart abandonment.
The $44 billion figure was calculated from the cart-abandonment rate against the median amount spent by online shoppers per year.
The survey found that 66 percent of shoppers turned to customer service when having problems with a website, 32 percent of customers abandoned a shopping cart or exited a website altogether when an issue occurred and 27 percent of consumers who abandoned a transaction turned to a competing website.
“[Sometimes] the user expectation is greater than what companies can deliver,” said Geoff Galat, vice president of worldwide marketing for Tealeaf. “People show clear intent to buy, and when they struggle, the business impact is so great.”
Galat recommends online companies maintain the same level of scrutiny and management as bricks-and-mortars stores would in terms of merchandising and customer service. Gallat gave an example of how bricks-and-mortars make sure there are enough check stands open.
Galat also described an “echo chamber” effect that could happen when customers turn to social networks to voice their displeasures or bad experiences and how it could also possibly negatively impact online retailers.
The best line of defense for e-tailers is to keep constant monitoring, said one online retailer.
“You have to know where your customers are running into problems,” said Matt Raines, vice president of technology for New York–based e-tailer Bluefly (www.bluefly.com). “You want to make sure you are always well-prepared to handle traffic and the increase of traffic. The better the customer experience, the more likely the increase in [sales] conversion.”—Connie Cho
